Acp-Eu Joint Parliamentary Assembly

ACP-EU JOINT PARLIAMENTARY ASSEMBLY

NOTICE TO MEMBERS

Members will find attached the follow-up given by the Commission to the resolutions adopted by the ACP-EU Joint Parliamentary Assembly during its 4th session of 18 - 21 March 2002 in Cape Town (South Africa).

The Co-secretariat

DV\493765EN.doc APP/3499 EN EUROPEAN COMMISSION

ACP-EU JOINT PARLIAMENTARY ASSEMBLY

BRAZZAVILLE (Republic of the Congo)

31 March – 3 April 2003

Members of the ACP-EU Joint Parliamentary Assembly will find attached progress reports on the follow-up action the Commission has taken or planned in response to the main points and certain specific requests contained in the resolutions adopted by the ACP-EU Joint Parliamentary Assembly during its session held in Cape Town (South Africa) from 18–21 March 2002.

The Commission is at the disposal of the parliamentarians for any further information they may require.

DV\493765EN.doc2 APP/3499 FOLLOW UP OF THE EUROPEAN COMMISSION TO THE RESOLUTIONS OF THE ACP-EU JOINT PARLIAMENTARY ASSEMBLY ADOPTED IN CAPE TOWN (SOUTH AFRICA) ON 21 MARCH 2002

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- on the situation in West Africa (ACP-EU 3383/02/fin.) 4

- on the situation in Central Africa and the African Great Lakes region 6 (ACP-EU 3384/02/fin.)

- on the situation in Southern Africa (ACP-EU 3385/02/fin.) 7

- on the situation in Madagascar (ACP-EU 3386/02/fin.) 10

- on the situation in Zimbabwe (ACP-EU 3396/02/fin.) 11

- on the situation in East Africa (ACP-EU 3387/02/fin.) 13

- on the Caribbean region (ACP-EU 3388/02/fin.) 14

- on the situation in Cuba (ACP-EU 3389/02/fin.) 15

- on the situation in the Pacific region (ACP-EU 3390/02/fin.) 16

- on the Economic Partnership Agreements (ACP-EU 3397/02/fin.) 17

- on negotiations between the ACP-EU on trade, rules of origin and sanitary and 18 phytosanitary measures (ACP-EU 3391/02/fin.)

- on the New Partnership for Africa’s Development (NEPAD) (ACP-EU 3395/02/fin.) 20

- on stagnation in the production sectors for bananas, rice and other products 22 (ACP-EU 3379/02/fin.)

- on sugar (ACP-EU 3370/02/fin.) 23

- on gender issues (ACP-EU 3392/02/fin.) 24

- on health issues, young people, the elderly and people living with disabilities 25 (ACP-EU 3398/02/fin.)

- on the impact of communicable diseases on health, young people, the elderly and 26 people living with disabilities (ACP-EU 3393/02/fin.)

- on sustainable development and Rio + 10 (ACP-EU 3394/02/fin.) 28

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RESOLUTION on the situation in West Africa

As regards Togo, the evolution of the political situation in early 2002, particularly the Government’s decision not to re-appoint the members of the Independent National Electoral Commission and the unilateral modification of the Electoral Code, obliged the Union to temporarily suspend its support to the election process. The Union also suspended its offer to send an election observation mission, and called on all the signatories to the Lomé Framework Agreement to resume the electoral process by the implementation of the agreements reached by the Joint Monitoring Committee in July 2001.No progress was, however, made in this respect. The Government finally organised the legislative elections under the revised legal framework on 27 October 2002. The main opposition parties who insisted on the organisation of the elections under the commonly agreed legal framework boycotted these elections. In a statement published on 5 November, the Union pointed out that the elections did not meet the conditions set out in the framework agreement and advised the Togolese authorities and all the opposition parties to ensure that the next elections enable all shades of political opinion to have their say and to participate with the greatest possible transparency and independence. The subsequent changes brought to the electoral framework through the modification of the Constitution and the electoral code by the Government without consulting the opposition have not changed the position of the EU.

The European Commission and Senegal have signed a protocol to renew this fisheries agreement for a period of 4 years from 1 July 2002 to 30 June 2006. This new protocol envisages a continuous monitoring of the development of the state of stocks with an annual scientific meeting. Once the scientific meeting has reached its conclusions, a Joint Committee can adopt appropriate measures to ensure the sustainable management of resources.

Concerning Sierra Leone, the European Commission is presently supporting war victims, amongst other target groups, in the framework of the ongoing 8th EDF Resettlement and Rehabilitation Project (€ 20 million) and by numerous projects financed under the budget of its Humanitarian Aid Office (ECHO). The annual allocation for 2002 amounted to € 11 million, providing assistance and support to uprooted populations (refugees and internally displaced persons) and victims of war. The sectors concerned are (1) health & nutrition, (2) water & sanitation and (3) shelter material and non-food items. For 2003, a new € 9 million annual programme has been approved by the Commission and is currently under implementation.

In Nigeria, over a thousand people died, many of whom were children, when munitions stores exploded on 31 January 2002 at barracks in the Ikeja suburb of Lagos. The Union immediately sent condolences to the President, and consulted on the provision of emergency aid which in the event was not followed up in view of local initiatives which were already underway. The United States and the United Kingdom sent bomb disposal teams to Nigeria in early February to assist in recovery efforts and in the location and disposal of stray unexploded bombs. The Federal Government of Nigeria has set up an inquiry to identify the causes of the disaster and ascertain responsibility. The Government has also set up the Lagos Explosion Disaster Relief Fund. The Federal Government is relocating the munitions dump in Ikeja barracks, and others in the country, away from residential areas.

DV\493765EN.doc4 APP/3499 Although the EU considered the referendum of 11 November 2001 and the legislative elections of 30 June 2002 in Guinea problematic, the EU tries to maintain a political dialogue with the Government of Guinea. The objective is to impress on the authorities the importance of organising the presidential election foreseen for December 2003 in a democratic manner. Special Representative of the Presidency for the Mano River Union, Swedish Secretary of State Hans Dahlgren, travelled to Guinea last November to discuss, amongst others, this issue. A letter jointly signed by Danish Presidency Foreign Minister Moeller and Commissioner Nielson was sent to President Conté calling for electoral reform and for the opening up of access to the media. A ministerial delegation met with Mr Dalhgren and with Commissioner Nielson in January to convey the wish of the Government to maintain the dialogue and to explain the views of the Government. Further progress on electoral reform is, however, still needed and the dialogue on this continues.

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RESOLUTION on the situation in Central Africa and the African Great Lakes region

DRC

The Commission is implementing the National Indicative Programme for the 8th EDF: approximately 85% of the financial envelope of € 120 million has already been committed. Given the guidelines on focused and effective aid under the various financial instruments available, the Commission has channelled a number of basic rehabilitation projects, particularly on health and medicines, to the eastern part of the DRC, in close coordination with earlier measures carried out by the humanitarian office, ECHO.

The total amount involved in projects currently under way in the eastern part of the country is some €24 million.

To the extent that it is competent for these matters the Commission has always provided support in international fora for the programme of disarming negative forces and for widening MONUC's mandate since at present this includes only the voluntary disarmament/demobilisation of foreign armed groups in Congo territory.

The Commission also contributes some €20 million to the trust fund established and managed by the World Bank to finance the development of a regional multi-donor strategy for demobilising and resettling former fighters in the wider Great Lakes region.

The Commission aims as far as possible to maintain a geographical balance in allocating its aid.

Burundi

The Commission has continued its cooperation with Burundi despite the security problems. The humanitarian office, ECHO, continues its humanitarian aid programme of €15 million in 2003, and the preparation of 8th EDF National Indicative Programme (NIP) implementation has started As regards 7th EDF NIP implementation, in particular the “Programme de Réhabilitation du Burundi (PREBU)” has been highly successful in implementing more than 270 small-scale projects, installation of water and electricity supplies, reconstruction of hospitals, health centres and markets. Furthermore, the 9th EDF NIP (€ 115 million) is in the final stage of preparation. Once the political situation is favourable, Burundi could participate in a demobilisation programme in the framework of MDRP (Multi-Donor Rehabilitation Programme) initiative administered by the World Bank.

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RESOLUTION on the situation in Southern Africa

ANGOLA

Following the signature of the peace agreement between the Government of Angola and UNITA on 4 April 2002, the Commission drew up a short-term plan of action to support the peace process. A total of €125 million was identified from the Commission budget and the European Development Fund (EDF) to finance a wide range of actions including emergency relief, food aid and food security, support for displaced people and returnees and de-mining operations. To respond to spiralling needs and the changing situation on the ground a Programme for Emergency Support to the Peace Process was set up within the Plan of Action to accelerate disbursement of uncommitted funds from the 7th and 8th EDF, comprising €30 million. These funds target emergency medical assistance, the distribution of seeds and tools and food aid to discourage consumption of the seeds (including to former UNITA soldiers and their families) and humanitarian de-mining.

In addition to this immediate financing, the Commission has a medium-term strategy under which the 9th EDF initial envelope of €117 million is earmarked to support the link between relief, rehabilitation and development in the areas of food security, health and education. This EC/Angola co-operation strategy was signed on 28th January 2003.

The Commission has offered assistance in preparing and supporting an International Conference for Angola’s reconstruction and development.

ECONOMY

In response to the continuing humanitarian crisis in Southern Africa, and in line with the conclusions of the General Affairs Council of 22 July 2002, which called for further efforts to alleviate the situation, the European Union’s contribution has risen to €412 million for the six most affected countries1 covering approximately 40 % of the total needs for the region. €186.6 million of this amount is managed directly by the European Commission and is made up of food aid, humanitarian aid and emergency distribution of seeds and fertilisers and specific programmes in the health, education and agricultural sectors2.

The European Commission’s support amounts to 277,000 metric tonnes of food aid of which 92% has been produced in Southern and East Africa, most of it being distributed between December 2002 and April 2003considered as the most critical (hunger) period. At present approximately 6 million people affected by this crisis - including around 3 million children - are benefiting from emergency food aid assistance from the European Commission in Zimbabwe, Zambia and Malawi. The total number of victims is estimated to be 15.25 million.

1 Based on information provided by EU Member States and the European Commission. The six most affected countries are Zimbabwe, Zambia, Malawi, Swaziland, Mozambique and Lesotho. These figures do not include Angola which is receiving substantial assistance. 2 Covers food aid (€117.6 million), humanitarian aid (€34.8 million) and funds from the European Development Fund (€34.2 million). DV\493765EN.doc7 APP/3499 Non-food humanitarian aid (€ 30.0 million) has been delivered as well: home based care programmes for emergency health and HIV/AIDS patients, procurement of agricultural inputs, water and sanitation improvements, enhancing the collective capacity of WFP and its partners to transparently distribute food aid and to monitor effectively its non-partisan distribution, humanitarian relief for refugees, blanket feeding of certain vulnerable groups, school-feeding and elaboration of a cholera preparedness plan.

Estimates of food deficits in the Southern African region point to continuing and, for some of the countries, increasing food insecurity during the months to come. Even under optimistic scenarios for Government’s and commercial imports, and assuming that food aid comes through as now hoped, countries like Zambia and Zimbabwe may still be faced with combined 400,000 MT domestic deficit. Continuing erratic weather (dry spells in Zambia and Zimbabwe, rain and floods in Malawi) do not augur well for the 2002-2003 agricultural crop, leaving open the possibility that cereal gap estimates may have to be revised upwards, closer to the harvest in April-May of 2003. Additionally, while South Africa had a surplus in 2002, this country too has suffered from the dry spells, making a surplus in 2003 unlikely.

The humanitarian crisis in Southern Africa is not over yet and it is feared that 2003 will be as critical if not worse than 2002 in some countries. The European Commission is particularly worried about the rapid degradation of the Zimbabwean economy and agriculture production and its negative impact on the entire region. Zimbabweans now represent half of the people in need of emergency aid in the region and this proportion will probably be greater in the near future considering the preliminary information available on the coming harvest in Southern Africa and considering in particular the impact of a second year of drought in the centre and in the south of Mozambique. The European Commission is aware of the worsening impact of the HIV/AIDS pandemic on both rural and urban communities all around Southern Africa which will continue to undermine food security objectives.

The European Commission is following closely the development of this crisis and is prepared to offer support in close contact with the World Food Programme (WFP), the Office for the Co- ordination of Humanitarian Affairs (OCHA) and the Southern African Development Community (SADC).

The European Commission also strongly believes that important policy issues, such as good governance in all its aspects, civic education and promotion of popular participation, reinforcement of the political dialogue within the EU Common Foreign and Security Policy (CFSP) and the Cotonou Agreement, which were not addressed in the past, are now significantly hampering the delivery of assistance in some of the affected countries. It also attaches great importance to the close monitoring of the delivery of humanitarian assistance, the potential threats to the neutrality of humanitarian assistance and possible politicisation of this assistance. Furthermore, the Commission believes that additional efforts should focus on more broadly based and longer-term developmental aspects and should aim at the progressive eradication of poverty throughout the Southern African region and restoration of genuine social and economic development. In particular there is a need to link relief and development (LRD). There is also a need to address proactively the issue of land reform in Southern African countries. Finally, in this context reinforcement of the regional co-ordination role and institutional set-up of SADC will be of major importance. The EU is prepared to assist in achieving this goal.

DV\493765EN.doc8 APP/3499 The European Commission is already preparing additional commitments under the 2003 budget to assist in addressing the crisis. It will continue to target its response to the poorest and most vulnerable groups including HIV/AIDS victims as well as to internally and externally displaced persons including refugees.

The Commission agrees that foreign investors should act in accordance with national laws and commercial and legal requirements and respect their social obligations in the host countries.

The Commission remains seriously concerned with the withdrawal of one of the main foreign investors in the Zambian copper mines and the economic and social consequences of this decision. Nevertheless, the Commission hopes that the agreement between the mining company and the Zambian Government opens up important possibilities both in order to facilitate the restructuring of the mining industry in Zambia and in order to cushion negative social consequences of the restructuring process.

The strong dependence of the Zambian economy on the copper mining sector makes the need for a policy to promote economic diversification particularly obvious.

The Government of Zambia has undertaken to create an enabling environment for the private sector and to promote the diversification of the economy. The European Community is supporting these government efforts through the Export Development Programme II (€6.5 million), the Private Sector Development Programme (€8 million), the Trade and Enterprise Support Facility (€3.1 million) and the Mining Sector Diversification Programme (€30 million). Through this important package of programmes the Government and the EC are promoting the diversification of the economy away from copper and cobalt production as the main source of employment and the predominant foreign exchange earner.

DEMOCRACY

The Government of Zambia and the EU maintain a continuous dialogue in conformity with the provisions of the Cotonou Agreement.

President Mwanawasa received the local EU Troika on 10 April 2002. There was a strong mutual interest in the dialogue. The discussions were frank and constructive. The dialogue included the EU concerns regarding the election process, but essentially it was forward looking.

Commissioner Paul Nielson, during his visit to Zambia on 23 to 25 January 2003, had a positive and productive dialogue with President Mwanawasa on the last general election results and the government zero tolerance corruption policy.

Capacity Building and Institutional development is one of the focal sectors of the 9th EDF Country Strategy Paper for Zambia. EU support will focus on strengthening of the institutional capacities of the Zambian public and private sectors to manage the economy and promote private sector led development. Approximately €40 million is reserved for this focal sector. The different projects and programmes should strengthen the financial and economic management capacities of the Zambian public service; and build capacities for public-private dialogue; build capacities of non-state actors.

This EU support aims to develop Zambian institutions and to improve and to consolidate good governance.

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RESOLUTION on the situation in Madagascar

The Commission wishes to recall that the crisis in Madagascar ended last July, with Marc Ravolamanana pledging to work towards reconciliation and announcing early Parliamentary elections and the international community recognising him as President of Madagascar.

The EU recognised him as President on July 11, declaring its support for the reconciliation process launched and its readiness to assist the preparation of Parliamentary elections and to contribute substantially to Madagascar's efforts in restoring its economic and social situation.

The Commission, during the seven months long crisis, was committed to a solution which respected civilian peace, democracy and the interests of the people of Madagascar. To this end the Commission supported all the mediation efforts of the OAU and of the UN to encourage national reconciliation and a peaceful, global and lasting solution of the crisis.

Furthermore, during this period, the Commission took several measures to alleviate the effects of the protracted crisis on the population, such as the rehabilitation of roads and the re- establishment of free movement of goods and persons, thus ensuring the supply of food and medicine.

The Commission is committed to implementing an important co-operation programme with Madagascar, to contribute to its economic and social recovery. To this end the Commission has signed with the Government of Madagascar, on July 18, the 9th EDF Country Strategy Paper and National Indicative Programme. As part of this programme the Commission has already provided, in co-ordination with other donors, an urgent budgetary support and is now preparing the implementation of other projects.

In addition, in order to support the consolidation of democracy in the country, an EU Electoral Observation Mission (EUEOM) was deployed in Madagascar to observe the early legislative elections of 15th December 2002. The EUEOM declared that the organisation of the elections was globally positive, despite some weaknesses and isolated cases of intimidation. The Commission has also provided technical assistance to the electoral process..

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RESOLUTION on the situation in Zimbabwe

As a response the Commission has continued to focus on three areas:

Suspension of aid and restructuring of aid portofolio: the implementation of the Council Decision of 18 February 2002 on appropriate measures under art. 96 of the Cotonou Agreement and its extension until 20 February 2004, has led to the suspension of EC development aid except for those projects in direct support of the population. As a result financing has been re- oriented, in co-operation with the National Authorising Officer (NAO) of Zimbabwe, towards activities in the social sectors, democratisation, respect for human rights and the rule of law. Basically, it has been agreed that Health, Education, Micro-projects and Decentralised Co- operation Programmes will be maintained. As a result of the restructuring exercise, there is about € 43 million released for new projects. Total resources available for Zimbabwe under EDF and Community budget, including pledged humanitarian assistance, amount to about € 212 million.

Humanitarian aid: Zimbabwe is the worst hit country by the current food crisis in the Southern Africa region. In response to the crisis and in line with the conclusions of the Council Decision of 22 July 2002, the overall short-term contribution by the Commission up to January 2003 amounts to € 79.3 million to finance 137.000 tonnes of food aid for the benefit of 2.44 million people and support to the World Food Programme and its partners to enhance their collective capacity to transparently distribute food aid and to monitor effectively its non-partisan distribution. A further Financing Decision for humanitarian operations in Zimbabwe, for approximately €10-€12 million will be proposed to the Commission for adoption in April 2003 to cover operations during the second half of 2003.

In order to ensure that food aid efforts are not hampered by politicisation and following the Council’s request, the Commission has finalised concrete EU guidelines for food distribution in Zimbabwe.. These guidelines, covering general and operational principles on beneficiaries and independent monitoring, have been drafted in consultation with EU Heads of Mission, UN Agencies and NGOs in Zimbabwe.

To respond to this unprecedented regional humanitarian crisis, the Commission is also taking a medium and long-term regional approach. As an initial step, the Commission organised in October 2002 a three-day regional seminar in Pretoria followed by a meeting with experts from the member states in January 2003 to enhance EU co-ordination and complementary efforts. The dialogue between the Union and regional stakeholders on the management of this crisis could facilitate further discussions and open new ways of approaching the Zimbabwe situation.

Support for peer pressure: In order to enhance its capacity to influence events, the Commission has followed closely developments in Zimbabwe, through various demarches, troikas, declarations and frequent meetings in particular in the framework of the EU-SADC political dialogue. This remains a favoured means to support any peer pressure that African Heads of State, and Southern African in particular, may put on the Zimbabwe Government. The EU has on several occasions spoken out about the violation of human rights and democratic principles in the country, as expressed in the most recent Declaration of 20 February by the

DV\493765EN.doc11 APP/3499 Presidency. The EU strongly believes that the restoration of the rule of law and the respect of human rights and of democratic principles in Zimbabwe is the number one priority in order to achieve reconciliation and political tolerance.

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RESOLUTION on the situation in East Africa

COMOROS

The Commission confirms that the re-establishment of a democratically elected government in June 2002 allowed the lifting of the Special Measures imposed in February 2000 and also the signing of a 9th EDF Country Strategy Paper and National Indicative Programme for Comoros.

ERITREA / ETHIOPIA

The Commission welcomed the firm and unequivocal statements made by both Ethiopia and Eritrea on respecting the 13th April 2002 Decision of the Boundary Commission. It welcomes the progress made so far in the peace process, but urges both parties to continue to cooperate fully with the Boundary Commission in the implementation of the Decision, in particular by proceeding expeditiously with demarcation.

SOMALIA

The European Commission has provided substantial political and financial support to the IGAD – sponsored the Somalia reconciliation conference, the first session of which began on 15 October in Eldoret (Kenya). Furthermore, in line with the Council conclusions of 22 July 2002 and the EU declaration of 4 October 2002, the Commission is assisting the process in any way possible giving full support to a peace and reconciliation agreement. In parallel, a 4th rehabilitation project of €50 Million was approved by the Commission on 18 June 2002 and is currently being implemented.

SUDAN

The EU welcomed the signing in July 2002 of the Machakos Protocol between the Government of the Sudan and the SPLM/A (under the IGAD peace process). Furthermore during the regular EU/Sudan political dialogue the EU has supported the peace talks as part of a single and unified process avoiding a proliferation of peace initiatives. The EU once again confirmed its support to the IGAD peace process by issuing on 14 October 2002 a declaration on the resumption of the peace talks.

The Commission actively supports the Nuba Mountains ceasefire, and is implementing projects in areas such as food security, water and sanitation, health and anti-landmine actions for an amount of €4.7 million.

UGANDA

The Commission has been following with great concern the deterioration of the humanitarian situation in Northern Uganda. Following the release of humanitarian assistance by ECHO of more than € 2 million in 2002 in the areas of health, water and sanitation, food security and support to released abductees/former child soldiers, an additional € 4 million have been made available 2003. Additional assistance is currently under consideration.

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RESOLUTION on the Caribbean region

Haiti

The elections scheduled for November 2002 have still not been held and discussions between the political parties in Haiti have still not produced any concrete results. A recent OAS resolution (No 822 of 4 September 2002) provided for the establishment of an independent electoral council by 4 November 2002 and of an electoral guarantees commission by 4 December 2002. Neither the electoral council nor the guarantees commission were in place by the scheduled date. Institutions representing civil society, which were due to participate in the electoral council, have asked for an extension of the deadline and for the government to guarantee the safety of the future council members. The provisional electoral council was finally set up by decree of 7 February 2003 and seven of the nine members have been appointed. The EU will monitor the situation closely in the coming months.

The ‘appropriate measures’ taken by the EU are not economic sanctions but concern its cooperation programme with Haiti. The decisions were taken in line with the Cotonou agreement, whose essential elements are respect for human rights, democratic principles and the rule of law. The decisions were taken with the clear objective of not penalising the Haitian people. While aid to the government has been suspended, cooperation activities continue. Areas of support include mainly good governance, food security, agricultural development and education. NGOs play a major role in the implementation of these projects.

The EU supports the efforts of OAS and CARICOM to help resolve the crisis, build the necessary climate of security and confidence and provide aid to the people of Haiti. The European Council, conscious of the chronic nature of the political crisis and alarmed by the deterioration in the socio-economic situation, has therefore reviewed its decision of 21 January 2002 and adopted appropriate new measures on 21 January 2003. These measures include, firstly, redirecting the remaining funds of the first 8th EDF tranche to projects that are of direct benefit to the Haitian people, in order to strengthen civil society and the private sector, support democratisation and underpin the rule of law and the electoral process, secondly, releasing the second 8th EDF tranche for these projects.

The release of the second tranche allows greater flexibility and makes more resources available for cooperation, in particular for tackling the steadily worsening social and health situation.

The Commission is well aware of the consequences of the political and economic situation in Haiti on the region, and in particular on its neighbour the Dominican Republic.

It is therefore ready to support any initiative leading to the normalisation of the political situation in Haiti. The decisions taken under Article 96 do not, however, affect Community programmes covering the Caribbean region (including Haiti) or cross-border programmes between Haiti and the Dominican Republic, which will therefore continue.

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RESOLUTION on the situation in Cuba

The Commission has continued its efforts to involve European and Cuban NGOs in the implementation of Community-financed co-operation measures in Cuba. At present the Commission supports 26 NGO projects in Cuba. In the context of the 2002 Call for Proposals under the NGO co-financing budget line the Commission decided to award 3 new projects to European NGOs, for a total amount of € 1,6 million.

Political dialogue between Cuba and the EU has intensified over the last months. On 4 November 2002 the EU troika met with Cuba in Copenhagen. This was the second political dialogue at senior official level since the re-launched political dialogue under the Belgian Presidency in December 2001.

On January 2003 Cuba officially introduced a request to accede to the Cotonou Agreement. The Commission will prepare a proposal for a Council decision on the basis of a technical assessment concerning Cuba’s eligibility for membership. The Commission’s assessment concerning Cuba’s eligibility to apply for Cotonou will be done on the basis of Art. 94 of the Cotonou Agreement.

The Commission has recently decided to open a Delegation in Havana. The Delegation is headed by a Chargé d'affaires working under the authority of the Head of Delegation in the Dominican Republic, who will be accredited to Cuba but non-resident. The Establishment Agreement was signed on 29 January 2003 between the Commission and the Cuban Government, and the Chargé d’affaires took duty on 2 February 2003.

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RESOLUTION on the situation in the Pacific region

Solomon Islands

The Commission is closely monitoring the political and economic situation and new developments in the country. Particular attention is focussing on initiatives taken by the Government itself in terms of economic recovery and re-establishment of law and order, as well as actions supported by the international donor community. The Commission is ready to assist the Government in its rehabilitation process, together with other international donors and financing institutions. Some recent initiatives: The European Community is financing Solomon Island students’ university fees for the academic year 2002/2003 and the running costs of secondary schools and is providing a British Police Commissioner and his assistants (co- financed with the UK). The Commission is also involved in the Australian initiated Multi-donor economic governance mission that is supposed to send its report to the Government by early March, for in-depth discussion with the donor community.

Aviation and small island states

The Commission is well aware of the particular difficulties of small island nations in relation to air transport links, and has supported this sector in the past. Under the Cotonou Agreement, priorities for Community support have been defined jointly with the countries based on their own priorities. Transport was not chosen as a focal sector for EDF assistance in the Pacific. Air transport and shipping projects might be considered by the European Investment Bank, according to the Bank's eligibility criteria.

Fiji

Measures taken under article 96 of the Cotonou Agreement still apply for Fiji, pending the resolution of the constitutional case, now before the Supreme Court, on the legitimacy of the Government. Despite the constitutional requirement, Prime Minister Laisenia Qarase did not take on board representatives of those political parties having collected more than 10% of votes at the general elections in 2001, and, as a result, the Government has been challenged in the Court. The Supreme Court’s first hearing has been scheduled for 18 June 2003. The Commission expects a quick decision of the Court and a smooth implementation of the ruling by the Government.

The signature of the new Country Strategy Paper 2002-2007 related to the 9th EDF has been postponed, awaiting the outcome of the constitutional case. In order to facilitate swift implementation of our co-operation once the constitutional case is decided, the Commission has carried forward the programming phase of the 9th EDF. Education in rural areas has been selected as focal sector. Furthermore the Commission has resumed the implementation of development projects funded through the 7th and 8th EDFs. Full co-operation will be re- established once all Art. 96 measures have been lifted.

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RESOLUTION on the Economic Partnership Agreements (EPAs)

At the launch of the EPA negotiations on 27 September 2002 the Commission reiterated its intention to place in the negotiations special emphasis on the development aspects of EPAs. The Commission is committed to the objective, that EPAs should contribute to the smooth and gradual integration of the ACP states into the world economy and to overall poverty reduction.

The Commission is aware of the need to take a comprehensive approach in the negotiations, addressing all barriers to trade, including structural and institutional bottlenecks in the ACP countries and regions. EPAs should build on and strengthen regional economic integration, leading to regional poles of attraction for national, regional and foreign direct investment. In this context, EPAs should contribute to the necessary structural transformation of ACP economies.

Regarding the need for flexibility and adequate differentiation for LDCs and small economies, the Commission intends to take into account the specific situation of all ACP countries and regions, both during the negotiations and in the implementation phase of EPAs. Starting point should be the different intensities of integration which exist within a region and the particular situation of individual countries within the regional integration process.

The Commission reiterates that, as agreed in the Cotonou Agreement, budgetary adjustments and fiscal reforms should be undertaken where necessary during the preparatory period. The EU committed itself to assist the ACP in this endeavour. In this context, the Commission is open for any suggestions to undertake specific analysis and studies which should include issues such as reforms of institutional and revenue collection systems and the impact of new revenue systems on disadvantaged groups.

The Commission has initiated a Sustainability Impact Assessment (SIA) which will accompany the negotiations and will aim at bringing a better understanding of trade, development and economic, social and environmental linkages. To ensure an open and transparent process the Commission will hold regular consultation and information meetings on the Sustainability Impact Assessment and on the content and progress of negotiations with all actors concerned. First consultation meetings on EPAs took place in Brussels (July, September, November 2002; March 2003). A conference on SIAs, with active participation of representatives from ACP countries, was organised in February 2003. Further meetings will follow, both in the EU and in the ACP countries.

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RESOLUTION on negotiations between the EU and the ACP States on trade, rules of origin and sanitary and phytosanitary measures

Rules of origin

In the Cotonou Agreement, the ACP States and the Union agreed to an improved, updated and consolidated set of rules of origin and methods of administrative co-operation. At the same time, both parties recognised the possibilities for further adaptations. The Economic Partnership Agreement negotiations will be based on the rules of origin of the Cotonou Agreement, and again the Union will assess any specific request for changes to the rules of origin, presented by the ACP, aimed at improving current market access for the ACP.

Meanwhile the Commission does everything within its power to ensure the correct and uniform application of the rules of origin of the Cotonou Agreement, in line with the objectives of that agreement. In this context, the Commission is fully involved in the follow-up to investigative missions involving OLAF.

Sanitary and Phytosanitary Measures (SPS)

Article 48 of the Cotonou Agreement requires that sanitary and phytosanitary measures (SPS) should not constitute a means of arbitrary discrimination or a disguised restriction to trade. Furthermore, the Parties agree to reinforce co-ordination, consultation and information as regards notification and application of proposed sanitary and phytosanitary measures.

As well as the notification procedures set out above and in the World Trade Organisation (WTO) SPS Agreement, the Commission also applies Article 12 of the Cotonou Agreement and provides the ACP with legislative proposals for comment and is available for consultation on such measures.

An important element of the Community’s capacity building programme is technical assistance in the field of SPS. As well as national and regional assistance programmes, there are some all- ACP assistance programmes in the field of SPS, such as the Pesticides Initiative Programme and the programme to improve sanitary conditions in the fisheries sector.

Sustainable Impact Assessment (SIA)

The negotiations will be accompanied by a Sustainability Impact Assessment (SIA), ensuring that Economic Partnership Agreements (EPAs) serve the objective of sustainable development. The work, which has already begun, will be fully participatory and draw on civil society from both the Union and the ACP states. The SIA has been designed to be flexible and to evolve to tackle issues as they emerge in the negotiations.

Export subsidies

DV\493765EN.doc18 APP/3499 The European Community has reduced its export subsidies as a consequence of the Common Agricultural Policy (CAP) reforms carried out since 1992 and as a consequence of WTO commitments to decrease them. Those commitments are fully respected by the Community. Clearly, the Community is committed to continuing the reform process of agricultural policies as indicated in the Uruguay Round Agreement on Agriculture. The Community has made a proposal to the WTO agriculture negotiations to reduce export subsidies by 45% in budgetary terms providing that all other forms of export subsidy, including abuse of food aid, be restrained in the same manner.

Private sector

The ACP states and the Union recognised in the Cotonou Agreement the primary role of the private sector in generating sustainable development. In the context of EPA negotiations the Commission proposes that the parties jointly establish a regulatory framework to enhance and stimulate mutually beneficial investment. This objective will be achieved taking fully into account the social, environmental and economic constraints facing the ACP, including those facing the local private sector.

The Commission would agree on the need for the private sector to act as a responsible partner in the development process, and is actively engaged in promoting corporate social and environmental responsibility.

Bushmeat

As regards the conservation of endangered species, this is of great concern to the Union, which is fully committed to implementing its international commitments under the Convention on International Trade in Endangered Species (CITES). Great apes such as gorillas and chimpanzees are listed in Appendix 1 of CITES on prohibited trade, as well as in Annex A to the Council Regulation N° 338 of 1996 on the protection of species and wild fauna. The major problem seems to be the continued slaughtering of such apes to provide bushmeat for local consumption. Occasionally, illegal trade is reported to occur, but only accounts for a small fraction of total consumption.

ACP countries, most of whom also are members of CITES, are encouraged to take the legal steps, and the enforcement measures, to bring such consumption to an end. Where applicable and useful, programmes for public information and for securing alternative sources of income, such as tourism, should be implemented. This has already been done with some success in certain areas, in relation to mountain gorillas.

DV\493765EN.doc19 APP/3499 ACP-EU 3395/02/fin.

RESOLUTION on the New Partnership for Africa’s Development (NEPAD)

The Commission has expressed its full support for NEPAD and has been pleased to see that it has been endorsed by the African Union (AU) as its socio-economic development programme.

The constitutive Act of the AU and the objectives of NEPAD share the same basic principles and common vision (governance; promotion of human rights and democracy). The Commission strongly supports these political values as they correspond to the “essential elements” of the European Union’s own external co-operation policy.

The Commission has been actively engaged in supporting NEPAD:

· The Commission has been involved in the joint Task Force for the elaboration of the NEPAD short-term action plan for infrastructure. Transport and Infrastructure are key priorities of the Community’s national country strategy programmes to be financed under the 9th EDF. The Commission will examine the priorities set at national as well as regional levels (under the Cotonou Agreement as well as MEDA and EU/South Africa Agreements) in order to make sure they harmonise with the NEPAD priorities. This is to ensure that the financing under the 9th EDF will effectively contribute to the NEPAD targets.

· The Commission has also committed itself to the support of a capacity building programme (€ 2 million) for priority actions in the implementation of NEPAD. The NEPAD Secretariat is presently working on this programme of support.

· Through the personal representative of President Prodi, the Commission was actively involved in the drafting of the G8 Africa Action Plan adopted in Kananaskis last June. Since then, the Commission has been participating in the continued exchange of G8 on the implementation of the Action Plan in preparation of the Evian Summit in June 2003.

· The Commission financed the Forum of African Parliamentarians on NEPAD, held in Cotonou (7-9 October 2002), designed for African parliaments to follow NEPAD and to increase African ownership of NEPAD. This Forum was initially proposed at the ACP-EU Joint Parliamentary Assembly in Cape Town.

· The Commission is intending to contribute to the financing of the main initiatives of NEPAD (infrastructure, water, energy) essentially through its programmes allocated to African countries and regions under the 9th EDF.

· In early July, on the occasion of the Durban Summit which launched the African Union, President Prodi sent an official message of support to President Mbeki as the first President of the African Union, confirming the Commission’s willingness to develop and strengthen its political dialogue with Africa as a whole and with its new political institutions and to offer concrete support to the establishment of the African Union, particularly with respect to its peace and security mechanism and to strengthen institutional capacity in the transition period. Support to the newly strengthened Peace and Security mechanism of the African Union represents a priority for the Union. In the field of Peace and Security, the DV\493765EN.doc20 APP/3499 Commission intends to develop close co-operation with the Commission of the African Union and has earmarked € 10 million for contribution to the African Union Peace Fund.

· The Commission is currently reflecting on a pan African support programme, which would allow us to move away from a project based approach to a more comprehensive, foreseeable programme. This programme would include the four core activities of the AU: peace building, governance, regional integration and institutional building of the AU in the transition period.

· In Johannesburg in September, during the World Summit on Sustainable Development, President Prodi met for the first time with the Secretary General of the African Union, Mr Amara Essy. They planned to keep up regular contact.

The development of a new pan African level of governance establishes a new framework for the EU-Africa dialogue. This was confirmed at the EU/Africa Ministerial Conference in Ouagadougou (November 2002).

The postponement of the Lisbon summit should not prevent the development of new modalities to structure and to enhance the quality and outcomes of the current dialogue between the AU and the EU as agreed in the Ministerial meeting in Ouagadougou.

DV\493765EN.doc21 APP/3499 ACP-EU 3379/02/fin.

RESOLUTION on stagnation in the production sectors for bananas, rice and other products

The Commission has taken appropriate action in support of ACP banana producers following the changes to the import regime which were required to ensure compatibility with WTO rules. In order to help traditional ACP suppliers to better adapt to the new market conditions, a Special Framework of Assistance (SFA) was established in 1999 and a dedicated budget line was linked to it, amounting to around € 44 million per year. The SFA was put in place precisely to provide support aimed at either increasing the ACP competitiveness or enhancing diversification whenever the banana sector is no longer sustainable.

So far the SFA has been progressing reasonably well. The allocation methodology used has allowed those countries suffering from a bigger competitiveness gap and in which the share of the banana sector in the total GDP is higher, to receive more support. The total allocations granted to the twelve beneficiaries in the period 1999 – 2002 are over € 175 million, split between the Caribbean (about € 133 million) and Africa (approximately € 42 million).

According to the Cotonou Declaration XXIV on Rice, the Commission is prepared to finance, in the context of increasing competition on the EU rice market, an integrated programme focussed on the enhancement of competitiveness and efficiency of Caribbean rice exporting countries.

The Commission believes that problems raised by Surinam in connection with studies on rice have now been put behind us.

A Feasibility Study has now been completed and a Financing Proposal of the order of € 24 million is being prepared for Commission approval. This regional project, benefiting primarily Guyana and Surinam will include measures for new market development, improved processing quality improvement, an export credit facility, research and extension and pilot irrigation and drainage schemes.

DV\493765EN.doc22 APP/3499 ACP-EU 3370/02/fin.

RESOLUTION on sugar

The Commission recognises the contribution made by the sugar industry to economic development and poverty alleviation in ACP supplying states.

The Commission remains committed to the obligations set out in the Sugar Protocol and will continue to ensure its effective implementation in accordance with the provisions of the Cotonou Agreement. As agreed, the Sugar Protocol will be reviewed in the context of the new trading arrangements, in particular as regards their compatibility with WTO rules and with a view to safeguarding the benefits derived.

The Special Preferential Sugar (SPS) Agreement1 is a flexible instrument designed to ensure adequate amounts of raw sugar for the refining industry on the basis of an annual calculation of needs. It has never guaranteed fixed quantities of access. The annual availability is set according to the overall balance of sugar on the market. Thus all imports, including those from the Least Developed Countries, must be taken into account in establishing this balance.

1 Council Decision 870/2001 of 3 December 2001 (OJ L325, 8/12/01, pg. 21). DV\493765EN.doc23 APP/3499 ACP-EU 3392/02/fin. RESOLUTION on gender issues

The Commission intends to work strategically with the resources we have to strengthen its capacity to meet the ambitious agenda set out in the Programme of Action. We will train our people and counterparts in selected partner countries, we will clarify roles and responsibilities within our institution, we will improve analyses in programming processes, review sector and policy guidelines and establish performance indicators so that we can monitor progress. A concise manual, setting out those essential principles and guidelines for mainstreaming gender equality in development co-operation is now under preparation.

We have promised to report on progress and make mid term and final evaluations. The results of the Thematic Evaluation of the Integration of Gender in the EC Development Co-operation with third Countries for the period 1995-2001 will be available by end of March 2003 and will be part of the considerations on which to base a decision on a new Regulation for actions to promote gender equality for 2004 and after, when the present Regulation expires in December 2003.

Our strength is that the Programme of Action encompasses mainstreaming of gender equality in all the six priority areas of Community Development Co-operation implying that every service working in the area of development co-operation has a mandate to implement gender equality in its work. The trade sector will also be part of this work. It is well recognised that trade policies are not gender neutral and have different effects on men and women as a result of the different roles they play in the economy and society.

Since the Commission adopted this ambitious Programme of Action in 2001 a number of actions have been initiated to achieve effective implementation of the Programme. Most of that work relates to points or areas that have been identified by the Assembly, indicating that we are very much on common ground, eg the capacity building and training programmes for staff at headquarters and delegations that will start in 2003, and the need to strengthen the gender analysis of Country Strategy Papers (CSPS) and Poverty Reduction Strategy Papers. This will be done both through training key staff involved in the preparation of such strategy documents, and by ensuring that the programming guidelines for those documents are concrete and easy to follow.

Regarding collaboration with other donors, the Commission agrees that this is important. The Commission co-operates with the member states, OECD/DAC, World Bank and the UN. For example, the Commission has recently committed € 800.000 from budget line B7-6220, gender issues, to support gender responsive budgeting at local level in India, the Philippines, Morocco and Uganda, through UNIFEM.

As regards gender analysis of Country Strategy Papers, over 100 such papers were reviewed The result will feed into the programming process and into reviews and measures such as making the guidelines more operational. A web site with instructions and practical examples is presently under preparation. As regards gender impact assessments, the Commission has used this tool in the past to assess financing proposals, and is now preparing a new format adapted to the mainstreaming strategy to promote gender equality targeting both women and men.

DV\493765EN.doc24 APP/3499 ACP-EU 3398/02/fin.

RESOLUTION on health issues, young people, the elderly and people living with disabilities

In terms of follow-up to this Resolution, the Commission has concentrated its efforts to address the issue disability. The Commission has prepared a guidance note for its delegations and services on how to address and respond to disability issues in the field of development cooperation. The note has been prepared following consultation of organisations representing people with disabilities (notably the European Disability Forum (EDF)). The note will be sent out to delegations and services shortly. The note presents the main challenges that need to be addressed in the context of development cooperation to support people with disabilities. It also indicates concrete steps EU services and delegations can take to address the concerns of people with disabilities and, finally, indicates where further information can be found. The note emphasises the need for sensitising people working on development cooperation to these issues as well as for addressing the needs of disabled people through specific projects (a “twin-track approach”).

The Commission recognises the need for adequate investment in human and social development, both through earmarked funds for the social sectors and through macro-economic support with social conditionalities.

The Commission recognises the need to address the direct and indirect impact of HIV/AIDS on older people. Although the direct impact in terms of infection needs to be addressed as for other parts of the population, there is also a specific need for addressing the indirect impact of HIV/AIDS on older people, for example their growing role in caring for children who have lost one or both parents. Older people need to be supported in their role, for example through the extended family approach. At the same time, the needs of orphans and vulnerable children also have to be addressed through the education system. The Commission’s policy framework for education and training specifically highlights the impact of HIV/AIDS on the education system and tries to address some of these problems.

In 2002, the Commission committed € 32 million for a partnership (ACP/EC/UNFPA/IPPF) on reproductive health. This represents, as the Joint Parliamentary Assembly has called for, an increase in funding.

It has also programmed support for pharmaceutical policy in partnership with the ACP and the World Health Organisation (WHO). This is programmed on the 9th EDF and funding can be provided once the Cotonou agreement has entered into force.

The majority of Commission-financed health projects pay particular attention to improving basic health services including vaccination. A specific example is a programme (€ 54.5 million) targeted at reinforcing vaccination activities in Nigeria.

The new programmes in the private sector include a social clause requiring respect for core labour standards including children at work.

DV\493765EN.doc25 APP/3499 ACP-EU/3393/02/fin.

RESOLUTION on the impact of communicable diseases on health, young people, the elderly and people living with disabilities

On 26 February 2003 the Commission adopted a progress report on the European Community Programme for Action “Accelerated action on HIV/AIDS, malaria and tuberculosis in the context of poverty reduction.” The report concludes that the Action Programme has demonstrated that a strong EU voice is crucial, and, as a result of the Programme, EU positions on targeted HIV/AIDS, malaria and TB actions have been significantly strengthened on a global level jointly with other partners. Nevertheless, more efforts are needed to provide regular and structured dialogue with developing countries. Renewed efforts are also needed to work jointly at the European level as well as with specific partners on all the issues stated in the Programme.

The European Commission is also exploring support to initiatives of local production of key pharmaceuticals and reproductive health commodities. The European Commission keeps working at country level and aiming at sub-sector and sector support, including support to national pharmaceutical policies. The European Community is moving progressively from project to sector wide approach and social sector support through macro-economic support.The Commission is also preparing a joint programme with the World Health Organisation aimed at strengthening pharmaceutical policies in ACP countries. On the current crisis in reproductive health supplies, the European Commission has supported UNFPA and IPPF in programmes targeting ACP countries where reproductive health supplies are an essential element.

The mission of the Global Fund to fight HIV/AIDS, tuberculosis and malaria includes approaches in the area of prevention, treatment and care. The Community pledge of € 120 million (€ 60 million from the EDF and € 60 million from the budget) corresponds to 5.7% of the total pledges, and establishes the Community as an important contributor. The 15 EU Member States pledged in total € 1.349 billion, i.e. 64% of the total pledges (US $ 2.113 billion). The Commission holds a seat on the Board of the GFATM.

In July 2002, the Sixth Framework Programme (SFP 2002-2006) was adopted. It reflects a further substantial shift to increased research allocations for developing countries’ priority areas. Some € 400 million will target HIV/AIDS, malaria and tuberculosis research projects which will all include partnerships with developing countries. The International Cooperation programme has also increased the allocations towards other poverty-related diseases.

On the TRIPS agreements and the Doha declaration on public health, the Commission is participating in the ongoing discussions in Council related to para 6 and 7 of the Doha Declaration, which were meant to be resolved before the end of 2002.

The Commission has supported through its Humanitarian Office, ECHO, a € 300.000 epidemic response project to the Ebola outbreak in Gabon, delivered by Médecins Sans Frontières (MSF)- Belgium and EPICENTRE. While the monitoring alert system and the joint response (international-Ministry of Health in Gabon) has worked rapidly enough to contain the epidemic, there is still a vacuum of knowledge regarding where the virus hides between outbreaks. Epidemiological research is needed. The European Commission is also financing two research projects in Central and West Africa to better understand the underlying epidemiology and better

DV\493765EN.doc26 APP/3499 prevent, predict and respond to these outbreaks. One of the results has been the development of a diagnostic test which will make it possible to apprehend better the epidemic in the blossoming phase and to implement a suitable therapeutic when it becomes available.

The major problem seems to be the continued slaughtering of such apes to provide bushmeat for local consumption. Occasionally, illegal trade is reported to occur, but only accounts for a small fraction of total consumption.

DV\493765EN.doc27 APP/3499 ACP-EU 3394/02/fin.

RESOLUTION on sustainable development and Rio + 10

The Commission will ensure that poverty reduction and development are key elements in the negotiations of Economic Partnership Agreements (EPAs), which started on 27 September 2002.

The Commission has launched a Sustainability Impact Assessment, which will accompany negotiations and will provide negotiators with information and recommendations regarding the potential economic, social and environmental impact of EPAs. A key element of this assessment will be a wide consultation process with all stakeholders and non-state actors concerned, both in the Union and the ACP countries.

Beyond EPA negotiations, the Commission will ensure that issues regarding sustainable development of ACP countries will be included in the regular EC-ACP dialogue on trade matters.

The recent Communication of the Commission on Trade and Development stresses the importance of mainstreaming trade into the Poverty Reduction Strategy Papers (PRSPs) or similar mechanisms that Developing Countries have adopted to place poverty reduction at the heart of their national development policies.

The Union will systematically address the issue of trade and development in the ongoing dialogue with developing countries. It will invite its development partners to discuss how in each specific case enhanced trade can contribute to increasing economic growth, and how the benefits of that growth can best contribute to poverty reduction and social development.

It is important that Member States and ACP Governments act within international fora to ensure that WTO rules do not prevail over international law on environment; but that is only half of the equation: it is equally important that international law on environment does not prevail over WTO rules either: they are two separate but equal elements of international law. They should also promote mutual support for multilateral trade rules and international law on environment; in particular, they should promote a clarification of "the relationship between existing WTO rules and specific trade obligations set out in multilateral environmental agreements (MEAs)", as requested in paragraph 33 of the Doha Development Agenda; this clarification should bring more legal security for both systems of international rules.

EU initiatives on water and energy were successfully launched at the World Summit on Sustainable Development in Johannesburg, in support of the Summit’s Plan of Implementation. These initiatives demonstrate the Union’s commitment to translate the political agreements made in Johannesburg into concrete action, in support of the Millennium Development Goals. The EU Water Initiative, Water for Life, will make a positive contribution to achieving the target for clean water provision, confirmed at the Summit, as well as the new target on access to basic sanitation; agreement on the latter can be considered a major success for the Union, which consistently argued for such a target.

DV\493765EN.doc28 APP/3499 Agreements were also made at the Summit on the need for joint action to improve access to reliable and affordable energy services sufficient to facilitate the achievement of the Millennium Development Goals. Putting this agreement into action will be the focus of the EU Energy Initiative for Poverty Eradication and Sustainable Development.

The partnerships resulting from the initiative will be developed, through open dialogue, on a national or regional level, and will be founded on the key concept of ownership of the beneficiary countries/regions.

The Union is working together to take these initiatives forward, with both Member States and the Commission contributing to their development and implementation. Dialogue with recipients will be intensified to identify where results can be delivered quickly, within the context of existing development co-operation frameworks and poverty reduction strategies. In parallel, work is ongoing to establish structures and monitoring and reporting mechanisms that will be required to ensure that the initiatives continue to contribute effectively in the medium and long terms. We are committed also to work toward retaining the EU character of the initiative. The Commission will also strengthen its own capacity in this field and will increase efforts to identify financing possibilities coming from financial instruments of the Community.

The European Council is reviewing, at its Spring meeting the Union’s Strategy for Sustainable Development, with a focus on putting into practice the commitments undertaken in Johannesburg both with regard to its internal and external dimension.

One of the major achievements of Monterrey was the commitment taken by the Union and the US as well as some others to increase the volume of their development assistance. The EU will deliver on its commitment and several Member States have already taken important steps in that direction. The new Member States that will join the EU with the next enlargement will also give a positive contribution to the ODA targets from their accession.

However, it must be emphasised that the achievement of the MDGs requires joint efforts of all partners: the first challenge in implementation is therefore reinforcing the partnership with the developing countries and our bilateral and international partners.

Because of the close links between development and Global Public Goods (GPGs), it is unrealistic to try to impose a strict divide between these two agendas, including financing. But we must attach the highest priority to GPG issues that most directly contribute to our primary objective of poverty eradication. In principle, core GPG elements that benefit developed and developing countries alike should not be funded from aid budgets. We must also continue to make the case for additional funds, and make full use of non-financing mechanisms e.g. incentive structures, rules and regulations.

Overall, we need a more coherent global framework. Both national, regional and global policies must be put in place to ensure co-operation and equitable burden sharing. We must stop waiting for the emergence of “global public bads” before we react. As a first step towards this, we need an inclusive, transparent global process to look at priorities, governance and financing modalities – something the Union called for in the lead-up to Johannesburg. Development academics and policy makers in developed countries have led the debate on global public goods over the last few years: it is now time to take that debate to a wider audience, and to focus on practicalities.

DV\493765EN.doc29 APP/3499 Continuation of activities of ECOFAC is foreseen after the present phase ends. A prospective evaluation of the environmental activities funded by the Community in the region has just started. This evaluation will identify the key aspects of the new programme. The total amount of funding depends on availability of resources within the respective national and regional programmes in the Central African Region as well as the national programme of DRC and regional programmes in Southern and Eastern African Regions. This is to be agreed with the NAO’s and RAO’s of these regions.

The Commission considers that the current HIPC initiative still provides the most effective framework to deal with external debt of poor countries on a systematic and comprehensive basis.

We see the need for more work on the issue of debt sustainability to achieve the Millennium Development Goals as discussed in both Monterrey Conference and Johannesburg Summit.

We wish to stress that a strong link between debt relief delivery and the PRSP processes is to be maintained and strengthened. We need to ensure that national resources, including those derived from HIPC-savings, are effectively used in a poverty-reduction framework through the implementation of the PRSP, the improvement of public finance management and a close monitoring of indicators.

Debt relief must not be viewed as an aid delivery mechanism and should also not become a substitute for good governance, prudent borrowing or sound debt management. The financing of the MDGs cannot rely only on debt relief, and has to be assured by the full mobilisation of domestic resources in developing countries as well as through additional ODA flows.

The Commission endorses the point that adequate financing of the current HIPC initiative remains a crucial commitment of the international community. The Community alone has pledged more than € 1.275 billion for debt relief of which € 754 million have already been released and we remain committed to cover, on a fair burden sharing basis, the potential cost of the topping-up caused by the global economic downturn and the fall in commodity prices.

Environment in developing countries and tropical forests: an increase in spending in the years 2004 – 2006 is foreseen within the agreed financial frameworks for the respective regulations.. Furthermore, with respect to forests, the Community initiative on Forest Law Enforcement, Governance and Trade will be developed.

DV\493765EN.doc30 APP/3499